Assets (in KD)		Liabilities (in KD)
Cash	20000	Accounts payable	80000
Accounts receivable	100000	Accrued expenses	100000
Inventory	210000	Notes payables	180000
Property, Equipment, Plants	1500000	Long-term borrowings	400000
Less: Amortization	50000	Total liabilities
		Total equity
Total assets		Total Liabilities and Total Equity

Income statement
Sales	900000
COGS	400000
Gross profit
Operating expenses	200000
EBIT
Interest expenses	50000
EBT
Taxes	20000

Net Income

The fixed asset turnover ratio can be explained as follows:

(Note: Show calculation steps in the reasons box)

a.

Each dinar of sales is generating $0.62 in fixed assets.

b.

Each dinar of fixed assets is generating $0.62 in sales.

c.

Each dinar of fixed assets is generating $0.6 in sales.

d.

Each dinar of sales is generating $0.6 in fixed assets.